With the new report “Social Infrastructure: An Investment in the Future”, the global real estate service provider CBRE and the real estate investor, developer and service provider HAMBURG TEAM publish a comprehensive study on the current developments, potentials and challenges of this market segment. The report is enriched by guest contributions and the perspectives of numerous interview partners from municipalities, project development, educational institutions, finance and institutional investment.
“Education, health and public institutions are central building blocks of an efficient social infrastructure. They create stability, support social cohesion and enable sustainable development. Especially in times of profound economic and social changes, reliable social infrastructure continues to gain in importance,” says Dr. Jan Linsin, Head of Research at CBRE.
Sebastian Schlansky, Managing Director of Healthcare Real Estate & Social Infrastructure at HAMBURG TEAM, also emphasizes the growing importance: “We are seeing a significant increase in interest on the part of investors, especially in educational real estate. This is because demand in the municipalities is rising rapidly, while the project pipeline cannot yet keep up. Private capital can close a crucial gap here.”
In particular, the legal entitlement to all-day care for primary school children, which will apply nationwide from this year, growing numbers of pupils in urban regions and the digital transformation pressure of schools are exacerbating the need for expansion and renovation, according to the report.
Investments in educational real estate are characterized by an attractive investment profile. They offer long-term leases with terms of up to 30 years, the tenants show a high level of loyalty to the location and the space requirement is largely independent of the economic cycle. At the same time, the properties open up a wide range of entry opportunities for investors, from classic sale-and-lease-back to project developments and public-private partnerships (PPPs) in cooperation with municipalities.
“Social infrastructure is developing into a strategically important investment field. Not only because of long-term leases, but also because of their high social relevance,” explains Marco Schnell, Head of Portfolio Investment & Alternatives at CBRE.
“Investors with a long-term investment horizon and an interest in working with the public sector can generate stable cash flows while actively contributing to public services,” adds Marcus Max, Associate Director Valuation Advisory Services at CBRE.
The report “Social Infrastructure: An Investment in the Future” is available on the CBRE website [here](https://u7061146.ct.sendgrid.net/ls/click?upn=u001.gqh-2BaxUzlo7XKIuSly0rC4JpDTX1No7TQk2iZVc0WoJ-2FUjEfcUUwGrpmDGC21sOYS0-2Bgj-2BSDpuiNvpkdxL6Tw-2FuaCUaqxQFvTg77hrEWbxW0K-2FbxW-2FhF7U4AQ4t2HTm-2BjtG8B3G-2F-2FJclpDFO5z9LYLjJu-2BwDwzxoTjdzjYtfyn9FAVKukclqsgCQdrphFJyBfxEw_pLWLS52D16BvkgbJ8ee3XlyktgWjMDzgpPFVAhmULxtYr-2FN1NLn9-2FqpuZL3F6wD6-2FqFrG3MguGGbe9Ei51YZS10MsGF3tcK2FVue9jV1uGYSsWGylOzfpB4TrVS8Z7AXOupBQN0PTr8du9zVBYRrXSw4sdlBU1xu2YAXZ-2FxNn3Ek0GV2p8GZGqMrRjxrMFPHxqHNvVeQznHglZcDvqCzv88tkp2sRiywqupV6ArdpXF9B2-2FOGUy9FS4vJXG3JlyI-2FZyKhD6oEpx32zRZloEpT-2B0oP4h7TQCuTUJBHgYEIPpEKdtZkJmAmUP5N-2BEBr-2B-2BktiMDweJXT9JahWYuNVfUrA-3D-3D) available for download.
